Estonia-headquartered Eesti Energia is to present a voluntary takeover bid to Enefit Green’s minority shareholders at a premium above the market price.
The objective is to bring Enefit Green entirely under the state-owned Eesti Energia’s ownership and transform it into an integrated energy group, combining electricity production and sales portfolios.
Eesti Energia intends to offer Enefit Green shareholders the opportunity to sell Enefit Green shares at a price of 3.4 euros per share during the voluntary takeover bid.
The bid price is 47% higher than the Nasdaq Baltic stock exchange closing price on 26 March 2025 and 27% higher than the average trading price over the past three months.
The voluntary takeover bid price is based on market analysis and the average assessment of analysis houses.
The voluntary takeover bid is expected to start on 8 April 2025 and scheduled to last until 12 May.
If the bid is successfully completed, Eesti Energia will pay for the shares on 16 May 2025.
Anne Mere, Chairman of the Supervisory Board of Eesti Energia, said: “In the long term, to reduce energy prices and ensure energy security, Estonia requires a substantial increase in both dispatchable and renewable electricity generation capacity, as well as storage.
“Eesti Energia can most effectively contribute to this goal only as a strong and integrated energy company.”
Andrus Durejko, Chairman of the Management Board of Eesti Energia, added: “Repurchasing Enefit Green’s shares would enable us to create an integrated energy group where the portfolios of electricity sales and production are combined.
“By merging the production capacities of dispatchable generation and renewables, we can offer more competitive electricity pricing, increase profitability, and restore investment capacity.”
The Estonian Financial Supervision and Resolution Authority (EFSA) must approve the takeover bid and its documentation.
Eesti Energia will submit the corresponding documentation to EFSA for approval.
Consequently, there may still be changes to the terms and schedule of the planned bid.
The takeover bid will be announced with a notice, along with the publication of the takeover prospectus. Shareholders considering the offer must refer to these documents.
If Eesti Energia acquires at least 90% of all Enefit Green shares during the voluntary takeover bid, the remaining shares will be taken over for monetary compensation in accordance with the law.